Budgeting Basics Needs vs Wants A Financial Literacy

Budgeting Basics: Needs vs. Wants A Financial Literacy Lesson How do I prepare for the future I want?

Careers Education CEO College Degree Accountant College Degree Veterinarian College Degree + Vet School Teacher College Degree Welder Career Tech Training Construction Worker HS Diploma Mc. Donald’s Cashier HS Diploma Wal-Mart Cashier HS Diploma Registered Nurse College Degree Military Service 1 st year- Army HS Diploma Plumber Career Tech Training Airline Pilot College Degree + Aviation training Computer Programmer College Degree Social Worker College Degree

1. What are your plans for the future? What will you be doing at age “ 25”? Personal Financial Educational Career 2. What can you be doing now to achieve your goals? By the end of the school year? By next year?

Careers Salaries CEO $102, 690 Accountant $ 67, 190 Veterinarian $ 88, 490 Teacher $ 57, 200 Welder $ 38, 150 Construction Worker $ 39, 640 Mc. Donald’s Cashier $ 19, 790 Wal-Mart Cashier $ 18, 000 Registered Nurse $ 67, 490 Military Service 1 st year- Army $ 18, 802 Plumber $ 50, 620 Airline Pilot $102, 520 Computer Programmer $ 79, 530 Social Worker $ 45, 900

An Example of a Pie Chart

Questions about the Pie Charts 1. Which American household is over their budget? 2. For the low income American household, where is the largest percentage of their money spent? 3. Which household is spending the least amount on expenses for what they earn? Why do you think they have so much extra money? 4. What might be the reason for the larger amount of food costs for the wealthy American household as compared to the others? 5. For the average American household, where is the largest percentage of their money spent? 6. The low-income household is spending more than they earn. In your opinion, in what areas (other than housing, which usually is a set amount) could they reduce their expenses? 7. What other conclusions can you determine from the three household charts? 8. In your opinion, what should be most important in a budget? Least important?

What is Essential (needed) and Non-Essential (wanted)? ￮With your group, decide upon a recorder. ￮Determine as a group, the top 4 things in life that are needed (essential) for daily living. ￮Determine as a group, the top 4 things in life that may be something you may want but NOT essential for daily living. ￮Be prepared to discuss your choices.

Individual assignment 1. What are your plans for the future? What will you be doing at age “ 25”? 2. What can you be doing now to achieve your goals? By the end of the school year? Next year? 3. What “wants” are you willing to wait for to achieve your goals? Personal Financial Educational Career